Hope For The American Homeowner

The housing and mortgage industry as well as the majority of American homeowners have not had a lot to look forward to over this past year. We think this aspect is changing. There is a good argument for having a new hope in American housing as well as the mortgage and lending industry. In fact there are five arguments supporting a forecast of a recovering economy.

New Hope For Homeowners – 5 Reasons

1. Less Foreclosures

The volume of foreclosure sales are still high compared to what use to be considered typical, but compared to the worst times of recent foreclosure sales are trending downwards.

The reason that foreclosure has steadily become less and less of an issue is because of the new “work together” among all those involved in the foreclosure crisis. What we are trying to say here is that lenders are working with borrowers and borrowers are working with lenders, lawyers, loss mitigation specialist, nonprofit homeowner advocates and debt management counselors. Also a big part of the work together energy is the government support and guidance that Obama and his administration have contributed to this great country.

1. GDP Growth

The Gross Domestic Product is back on the rise according to the latest financial news. That’s right the economy has started to grow once again. The Fed has reported a positive growth in the US economy this last quarter. This is particularly important as a necessary step or milestone to reach before job growth can pick up.

1. The Success of the Making Home Affordable Plan

The Government finally got it right thanks to President Obama and his Administrations efforts and work on the development and creation of the Making Home Affordable Loan Modification and Mortgage Refinance Programs.

These programs are now known as HAMP and HARP. Obama’s mortgage help plan has other programs as well such as one that focuses on short sales, another one that provides foreclosure relocation help which is a program that is often called cash for keys. Another program which is brand spanking new is the “Hardest Hit Fund”. The Hardest Hit Fund provides extra financial assistance to the five states that have been hit the hardest by this countries financial hardship and housing crisis.

HAMP, the Home Affordable Modification Program has helped over a million American homeowners attain a lower monthly mortgage payment and thus allowed these families to make home affordable. That figure is not even counting the homeowners who were able to take advantage of the mortgage refinance program that has helped tens of thousands of American Homeowners obtain lower mortgage plans by refinancing there mortgage.

1. Home Sales are on the Rise

Existing home sales have been trending upwards. The catalyst behind this trend upwards is two fold.

1) The First Time Home Buyer Tax Credit

This tax break incentive provided first time home buyers with 8,000 dollars of extra purchasing power when buying a house.

2) It’s a Buyers Market

The lower housing prices will eventually attract home buyers.

1. Obama’s Credit Card Bill of Rights

American Consumers finally have some protection from the small print schemes of credit card issuers and the terrifying terms costs, and fees that come with those debt agreements. president Obama has passed a new consumer rights protection bill that puts restrictions on how far credit card companies can go, aka putting a cap on the predatory lending practices. He has created 10 basic credit card consumer protection laws together targeting credit card accounts directly. This is good news for the American consumer who can hopefully finally get a grip on the current credit card debt problems and obligations that many struggle with.

Though perhaps the homeowners of this great country are not out of the water yet but we are sure making some progress. One thing for sure is that there are some signs giving new hope for those homeowners who are in mortgage default and are in need of debt help.